BhartiAirtel Angel 101111

8/3/2019 BhartiAirtel Angel 101111

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Please refer to important disclosures at the end of this report 1

(` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)Net sales 17,276 16,983 1.7 15,215 13.5EBITDA 5,815 5,706 1.9 5,121 13.5

EBITDA margin (%) 33.7 33.6 6bp 33.7 0bp

PAT 1,027 1,215 (15.5) 1,662 (38.2)Source: Company, Angel Research

Bharti Airtel (Bharti) reported a mixed performance for 2QFY2012.The companys revenue came in-line with our expectations, while PAT camebelow expectations due to higher interest and forex loss. Also, KPIs of India

business declined during the quarter, leading to lower revenue growth in Indiamobile business. Bharti emerged as the first-mover in undertaking price increasesin prepaid call charges, the full impact of which will flow from 3QFY2012 and willaid the companys average revenue per minute (ARPM). We maintain ourAccumulate rating on the stock.Result highlights: For 2QFY2012, Bhartis consolidated revenue stood at`17,276cr (1.7% qoq growth). Revenue from mobile services for India came in at`9,783cr, down 0.6% qoq (lower growth than estimated), due to a 4.9% qoqdecline in minutes of usage (MOU) to 423min, as call drop rates are higher in2Q. However, ARPM grew by 0.9% qoq to `0.43/min. Zain Africas contributionto revenue stood at `4,591cr, up 4.9% qoq, because of 5.5% qoq growth in MOUto 128min, whereas ARPM declined by 5.4% qoq to 5.7US/min. EBITDA margin

of mobile India as well as Africa business decreased by 50bp and 45bp qoq to33.7% and 26.7%, respectively. Consolidated EBITDA margin for Bharti stood at33.7%, almost flat qoq. Net profit stood at `1,027cr, down 15.5% qoq,negatively affected by higher interest cost of `1,318cr, which includes forexloss of `239cr.

Outlook and valuation: Bharti is on its way to turnaround its Africa business bybringing down its network operating expenditure by outsourcing variousnetwork-related developments. Thus, we expect the combination of improvingKPIs and cost efficiencies to drive the EBITDA margin for the Africa business to26.6% and 27.0% by FY2012 and FY2013, respectively. We expect BhartisIndian and African mobile subscriber base to grow at a CAGR of 8.2% and16.9% over FY2011-13E to 190.0mn and 60.4mn subscribers, respectively. Wemaintain our Accumulate rating on the stock with a target price of `425, valuingBharti at EV/EBITDA of 7.0x FY2013E EBITDA.Key financials (Consolidated, IFRS)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012E FY2013ENet sales 36,962 41,847 59,467 72,089 83,165% chg 36.8 13.2 42.1 21.2 15.4

Net profit 8,615 9,108 6,035 5,726 9,412% chg 27.3 5.7 (33.7) (5.1) 64.4

EBITDA margin (%) 41.4 40.3 33.7 34.0 35.9

EPS (`) 22.7 24.0 15.9 15.1 24.8P/E (x) 17.5 16.6 25.0 26.4 16.1

P/BV (x) 5.0 3.6 3.1 2.8 2.4

RoE (%) 28.3 21.6 12.4 10.6 14.9

RoCE (%) 23.3 17.6 8.2 9.3 12.7

EV/Sales (x) 4.3 3.7 3.6 2.9 2.4

EV/EBITDA (x) 10.3 9.1 10.5 8.7 6.7

Source: Company, Angel Research

ACCUMULATECMP `398

Target Price `425

Investment Period 12 Months

Stock Info

Sector

Bloomberg Code

Shareholding Pattern (%)

Promoters 68.3

MF / Banks / Indian Fls 8.7

FII / NRIs / OCBs 17.1

Indian Public / Others 5.8

Abs. (%) 3m 1yr 3yr

Sensex (0.7) (15.9) 65.2

Bharti Airtel (6.0) 21.9 11.0

Face Value (`)

BSE Sensex

Nifty

Reuters Code

151,125

0.6

445/304

480,795

Telecom

Avg. Daily Volume

Market Cap (`cr)

Beta

52 Week High / Low

5

17,563

5,284

BRTI.BO

BHARTI.IN

Srishti Anand022-39357800 Ext: 6820

[email protected]

Ankita Somani022-39357800 Ext: 6819

[email protected]

Bharti AirtelPerformance highlights

2QFY2012 Result Update | Telecom

November 4, 2011


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Bharti Airtel |2QFY2012 Result Update

November 4, 2011 2

Exhibit 1:2QFY2012 Financial performance (Consolidated, IFRS)

(` cr) 2QFY12 1QFY12 % chg (qoq) 4QFY11 % chg (yoy) 1HFY12 1HFY11 % chg (yoy)Net revenue 17,276 16,983 1.7 15,215 13.5 34,259 27,446 24.8Operating expenditure 11,461 11,277 1.6 10,094 13.5 22,738 17,911 27.0EBITDA 5,815 5,706 1.9 5,121 13.5 11,521 9,535 20.8Depreciation & amortization 3,184 3,131 1.7 2,579 23.5 6,315 4,526 39.5

EBIT 2,631 2,574 2.2 2,542 3.5 5,206 5,010 3.9

Interest charges 1,119 855 30.8 332 237.1 1,974 752 162.6

Non operating expenditure - - - 0 - - (23) -

Other income - - 17 - 72

PBT 1,513 1,719 (12.0) 2,227 (32.1) 3,232 4,353 (25.7)

Income tax 490 514 (4.7) 568 (13.7) 1,004 943 6.5

PAT 1,023 1,205 (15.2) 1,659 (38.4) 2,228 3,410 (34.7)

Share in earnings of associate - - 0 - (7)

Minority Interest (4) (10) (55.1) (2) 91.3 (14) 13 (209.2)

Adj. PAT 1,027 1,215 (15.5) 1,662 (38.2) 2,242 3,404 (34.1)EPS (`) 2.7 3.2 (15.4) 6.0 (54.6) 5.9 9.0 (34.1)

EBITDA margin (%) 33.7 33.6 6bp 33.7 0bp 33.6 34.7 (111)bp

EBIT margin (%) 15.2 15.2 7bp 16.7 (148)bp 15.2 18.3 (306)bp

PAT margin (%) 5.9 7.2 (121)bp 10.9 (496)bp 6.5 12.4 (582)bp


Exhibit 2:Actual vs. Angel estimates

(` cr) Actual Estimate % Var.Net sales 17,276 17,091 1.1

EBITDA margin (%) 33.7 32.7 107bp

PAT 1,027 1,208 (15.0)


Mixed performance

For 2QFY2012, Bharti reported moderate revenue growth of 1.7% qoq, with

consolidated revenue coming in at `17,296cr, as 2Q is seasonally a weak quarter

because of the rainy season.

Exhibit 3:Revenue break-up (Business segment wise)Business segment (` cr) 2QFY12 1QFY12 % chg (qoq) 2QFY11 % chg (yoy)Mobile servicesIndia & South Asia 9,783 9,840 (0.6) 8,805 11.1

Mobile servicesAfrica 4,591 4,378 4.9 3,891 18.0

Telemedia services 953 946 0.8 912 4.5

Enterprise services 1,104 1,041 6.1 1,042 5.9

Passive infrastructure services 2,377 2,277 4.4 2,116 12.3

Others 406 378 7.4 226 79.6

Eliminations 1,937 1,877 3.2 1,776 9.0

Net revenue 17,276 16,983 1.7 15,215 13.5Source: Company, Angel Research


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November 4, 2011 3

Mobile business India and South Asia: Revenue of the mobile business Indiaand South Asia declined marginally by 0.6% qoq to `9,783cr, below our

expectation due to the higher-than-expected decline in MOU by 4.9% qoq to

423min, as call drop rates are higher in 2Q due to the rainy season. However, ARPM grew by 0.9% qoq to `0.43/min. This negatively affected the companys

average revenue per user (ARPU), pulling it down by 3.8% qoq to `183/month.

Revenue of mobile India and South Asia business was also impacted because

of the slight decline in value-added services (VAS) share (even when 3G services

are launched in all the circles), which decreased to 14.5% in 2QFY2012 from

14.6% in 1QFY2012. In 2QFY2012, the company added 3.6mn subscribers in this

segment, taking its total subscriber base to 172.8mn.

Exhibit 4:Trend in MOU (qoq)


Exhibit 5:Trend in VAS share (qoq)


Exhibit 6:Trend in ARPM (qoq)


Exhibit 7:Trend in ARPU (qoq)


Mobile Africa business: For 2QFY2012, Zain Africas revenue stood at `4,591cr,up 4.9% qoq, aided by a 5.5% qoq increase in MOU to 128min; however, ARPM

slipped by 5.4% qoq to 5.7US/min as against 6.0US/min in 1QFY2012.

In 2QFY2012, net subscriber addition was strong for Zain Africa at 2.1mn, taking

its subscriber base to 48.4mn subscribers.

(5.9)

(0.9)

4.9

2.7

(5.5)

(1.1)(0.1)

(0.8)

(4.9)

(8)

(6)

(4)

(2)

0

2

4

6

380

400

420

440

460

480

500

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(%)

(mins)

MoU qoq growth

9.8

11.011.8 11.6

12.713.8

15.0 14.6 14.5

5

8

11

14

17

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(%)

VAS share

(3.7)

(7.8)

(9.1)

(4.6)

(0.9)

(0.6)(2.4)

(0.8)

0.9

(12)

(8)

(4)

0

4

0.2

0.4

0.6

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(%)

(`/min)

ARPM qoq growth

(9.4)

(8.6)

(4.6)

(2.0)

(6.3)

(1.6)(2.5)

(1.8)

(3.8)

(12)

(8)

(4)

0

150

200

250

300

2Q

FY10

3Q

FY10

4Q

FY10

1Q

FY11

2Q

FY11

3Q

FY11

4Q

FY11

1Q

FY12

2Q

FY12

(%)

(`/month)

ARPU qoq growth


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November 4, 2011 4

Exhibit 8:Operating metrics for Zain Africa

2QFY12 1QFY12 % chg qoq 2QFY11 % chg yoy ARPM (US/min) 5.7 6.0 (5.4) 6.6 (13.6)

MOU (min) 128 121 5.5 112 14.0 ARPU (US$/month) 7.3 7.3 (0.1) 7.4 (1.5)

Subscriber base (mn) 48.4 46.3 4.6 40.1 20.8


Telemedia services: Revenue of the telemedia business grew by merely 0.8% qoqto `953cr on the back of 0.3% qoq growth in ARPU to `955 in 2QFY2012 from

`952 in 1QFY2012, as now 52.1% of the revenue of telemedia services is from

data services (non voice-based services). However, net subscriber addition again

stood very sluggish at 6,585 in 2QFY2012 vs. 25,818 in 1QFY2012.

Exhibit 9:Telemedia Subscriber base and ARPU trend


Enterprise services: Revenue of the enterprise services segment grew by 6.1% qoqto `1,104cr in 2QFY2012.

Passive infrastructure services: Revenue growth in the passive infrastructure servicessegment stood at 6.1% qoq to `2,377cr. Tenancy ratio improved to 1.89 in

2QFY2012 from 1.87 in 1QFY2012.

989

964937

961

954

934

934

952

955

600

800

1000

1200

1,500

2,000

2,500

3,000

3,500

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(`)

(in000's)

Telemedia subscribers (in 000's ) ARPU


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November 4, 2011 5

Exhibit 10:Trend in passive infrastructure business (qoq)


Margins remain flat

During the quarter, at the operational front, EBITDA margin of mobile India and

South Asia business, passive infrastructure business and mobile Africa business

declined by 50bp, 25bp and 45bp on a qoq basis to 33.7%, 37.5% and 26.2%,

respectively. However, due to the strong increase in the EBITDA margin of Digital

TV services, Bhartis consolidated EBITDA margin almost remained flat qoq at

33.7% in 2QFY2012.

Exhibit 11:Segment-wise EBITDA margin trend (qoq)


1.62 1.65 1.651.68

1.731.77 1.79

1.711.75 1.78

1.80 1.831.87 1.89

1.0

1.2

1.4

1.6

1.8

2.0

0

300

600

900

1,200

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

Tenancy

(x)

No.

oftowers

(in0

0's)

Bharti Infratel (BTIL) Indus BTIL tenancy Indus tenancy

35.9 35.2 34.9 33.3 34.2 33.7

44.046.1

44.6 45.2 45.5 44.2

24.5 24.7

21.525.7

22.1 21.5

35.537.1

38.637.0

37.7 37.5

20

30

40

50

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

(%)

Mobile services-India & South Asia Telemedia services

Enterprise services Passive infrastructure services


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November 4, 2011 6

Exhibit 12:Trend in EPM Mobile India and South Asia (qoq)


Exhibit 13:Opex break-up (qoq)


During the quarter, Bhartis consolidated net profit stood at `1,027cr, down 15.5%

qoq, negatively impacted by higher interest cost of `1,318cr, which includes forex

loss of `239cr.

Outlook and valuation

Bharti is on its way to turnaround its Africa business by bringing down its network

operating expenditure by outsourcing various network-related developments.

The company has been consistently adding 2.0mn2.1mn subscribers per quarter

in its Africa business. In terms of KPIs, the company has managed to increase its

MOU for Africa to 128min in 2QFY2012 from 115min in 4QFY2011 and is

expecting prices to remain stable in the African market. Thus, we expect the

combination of improving KPIs and cost efficiencies to drive the EBITDA margin of

the Africa business to 26.6% and 27.0% by FY2012 and FY2013, respectively.

On the domestic business front, the company undertook price hikes of 20% for

on-net prepaid calls for all its 22 circles. We expect this to gradually push the

ARPM upwards from `0.43/min in 2QFY2012 to `0.452/min and `0.50/min by

the end of FY2012 and FY2013, respectively. Hence, we expect Bhartis Indian and

(4.3)

(14.5)

(11.8)

(4.8)

(2.5)

(1.2) (6.9)

1.8

(0.2)

(20)

(10)

0

10

0.10

0.15

0.20

0.25

2QFY10

3QFY10

4QFY10

1QFY11

2QFY11

3QFY11

4QFY11

1QFY12

2QFY12

(%)

(`/m

in)

EPM qoq growth

11.6 12.4 12.9 13.3 12.6 13.2

22.3 21.8 21.4 21.9 21.8 22.5

9.6 8.2 8.6 8.5 8.7 8.84.6 5.7 5.6 5.7 5.4 5.3

15.8 18.2 19.9 17.1 17.7 16.6

36.1 33.7 31.6 33.5 33.7 33.6

0

20

40

60

80

100

1QFY11 2QFY11 3QFY11 4QFY11 1QFY12 2QFY12

(%)

Access charges Network costs License fee Employee cost S,G&A cost EBITDA margin


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November 4, 2011 7

African mobile subscriber base to grow at a CAGR of 8.2% and 16.9% over

FY201113E to 190.0mn and 60.4mn subscribers, respectively.

In addition, we expect increasing VAS share due to surging demand for non-SMS

data services to further comfort the companys ARPM. Bhartis MOU is expected to

remain soft because of the various free-minute packages offered by competition as

well as some moderation in volumes due to increased rates. However,

key downside risks such as 1) uncertainty in regulatory outcome; 2) pricing

scenario in Africa operations; and 3) delay in return on investments made in 3G

launches, still loom.

The strong cashflow generation on account of 1) the expected improvement in

operating profitability due to price increases in the domestic market and

cost-efficiency measures in Africa business and 2) lower capex needs of ~US$3bn

annually in future are expected to help the companys debt repayment abilities.

The company has brought down its net debt-to-equity from 1.38x to 1.33x in one

years time, and we expect it to further trend downwards to 1.2x and 0.9x by the

end of FY2012 and FY2013, respectively.

Thus, we prefer Bharti in the Indian telecom space and maintain our Accumulaterecommendation on the stock with a target price of `425, valuing Bharti atEV/EBITDA of 7.0x FY2013E.Exhibit 14:One-year forward EV/EBITDA (x)


Exhibit 15:Valuation

(` cr) FY2013EEBITDA 29,891

Target EV/EBITDA (x) 7.0

Target EV 209,240

Debt 54,291

Cash, cash equivalent and short-term liquid investments 6,312

Target mcap 161,262

Target price (`) 425Source: Company, Angel Research

0

75,000

150,000

225,000

300,000

375,000

450,000

525,000

Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 Oct-1

EV(`cr)

EV 17 14 11 8 5


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November 4, 2011 8

Exhibit 16:Key assumptions

Particulars FY2010 FY2011 FY2012E FY2013EMOU (min) 468 449 428 420

VAS share in voice revenue (%) 0.5 13.3 15.0 15.2APRM (`/min) 0.53 0.43 0.45 0.50

Subscriber base (mn) 127.6 162.2 179.1 190.0


Exhibit 17:Change in estimates

FY2012 FY2013Parameter Earlier Revised Variation Earlier Revised Variation(` cr) estimates estimates (%) estimates estimates (%)Net revenue 70,838 72,089 1.8 82,218 83,165 1.2

EBITDA 23,870 24,491 2.6 29,522 29,891 1.3PBT 7,820 7,793 (0.3) 12,503 12,501 (0.0)

Tax 1,978 2,099 6.1 3,126 3,125 (0.0)

PAT 5,879 5,726 (2.6) 9,397 9,412 0.2


Exhibit 18:Recommendation summary

Company Reco. CMP Tgt. price Upside FY2013E FY2013E FY2011-13E FY2013E FY2013E(`) (`) (%) P/BV (x) P/E (x) EPS CAGR (%) RoCE (%) RoE (%)

Bharti Airtel Accumulate 398 425 6.8 2.4 16.1 24.8 12.7 14.9Idea Cellular Neutral 98 - - 2.3 27.7 13.9 10.7 8.2

RCom Neutral 83 - - 0.5 13.0 (0.4) 4.2 3.1



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November 4, 2011 9

Profit and Loss account (Consolidated, IFRS)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012E FY2013ENet sales 36,962 41,847 59,467 72,089 83,165Roaming and access charges 5,290 4,481 7,499 9,786 11,103

% of net sales 14.3 10.7 12.6 13.6 13.3

Network operating exp. 5,936 8,912 12,993 15,802 17,088

% of net sales 16.1 21.3 21.8 21.9 20.5

License fee 3,827 4,088 5,166 6,200 7,074

% of net sales 10.4 9.8 8.7 8.6 8.5

Other expenses 6,596 7,513 13,774 15,811 18,010

Total expenditure 21,649 24,993 39,432 47,599 53,274

% of net sales 58.6 59.7 66.3 66.0 64.1

EBITDA 15,313 16,854 20,035 24,491 29,891% of net sales 41.4 40.3 33.7 34.0 35.9

Dep. and amortization 4,758 6,284 10,206 12,878 14,149

Non operating expenses 22 (18) 111 - -

EBIT 10,533 10,589 9,719 11,613 15,743Interest charges 2,762 18 2,182 3,820 3,242

Other income, net 1,753 70 129 - -

Profit before tax 9,523 10,640 7,666 7,793 12,501

Provision for tax 662 1,345 1,778 2,099 3,125

% of PBT 6.9 12.6 23.2 26.9 25.0

PAT 8,862 9,295 5,887 5,694 9,376Share in earnings of associate (71) - - - -

Minority interest 176 187 (148) (32) (36)Adj. PAT 8,615 9,108 6,035 5,726 9,412EPS (`) 22.7 24.0 15.9 15.1 24.8


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November 4, 2011 10

Balance sheet (Consolidated, IFRS)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012E FY2013ELiabilitiesShare capital 1,898 1,899 1,899 1,899 1,899Reserves and surplus 28,496 40,295 46,868 52,150 61,118

Tot. shareholders funds 30,394 42,194 48,767 54,049 63,016Minority interest 1,070 2,529 2,856 2,791 2,791

Secured loans 5,399 8,147 53,234 47,418 39,795

Unsecured loans 6,481 2,042 8,437 17,272 14,496

Total debt 11,880 10,190 61,671 64,691 54,291Other liabilities 1,816 5,300 4,665 3,000 3,500

Total liabilities 45,161 60,212 117,959 124,530 123,598AssetsGross block 54,981 69,725 96,810 112,790 122,790

Acc. depreciation 14,067 21,462 31,668 44,545 58,694

Net block 40,914 48,263 65,142 68,245 64,096

Goodwill 4,036 5,989 63,732 63,358 63,000

Oth. non-current assets - 1,825 1,918 3,192 3,200

Investments 3,805 5,236 622 1,315 1,315

Inventories 96 48 214 350 400

Sundry debtors 2,853 3,571 5,493 6,913 7,975

Cash and equivalents 1,115 2,532 958 1,970 4,998

Other current asst 6,552 2,381 3,921 5,421 6,921

Total current assets 10,615 8,532 10,585 14,653 20,293

Less: - current liab. 15,155 10,841 28,430 32,602 36,197

Less:- provisions 79 41 118 138 153

Net current assets (4,619) (2,350) (17,962) (18,086) (16,057)Net deferred tax - 1,249 4,506 6,507 8,044

Miscellaneous exp. 1,024 - - - -

Total assets 45,161 60,212 117,959 124,530 123,598


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November 4, 2011 11

Cash flow statement (Consolidated, IFRS)

Y/E March (` cr) FY2009 FY2010 FY2011 FY2012E FY2013EPretax profit from operations 7,771 10,571 7,536 7,793 12,501

Depreciation 4,758 6,284 10,206 12,878 14,149Expenses (deferred)/written off - - - - -

Pre tax cash from operations 12,529 16,854 17,742 20,671 26,650

Other income/prior period ad 1,753 70 129 - -

Net cash from operations 14,282 16,924 17,872 20,671 26,650

Tax (662) (1,345) (1,778) (2,099) (3,125)

Cash profits 13,620 15,584 16,098 18,572 23,524(Inc)/Dec in

Current assets (3,609) 3,501 (3,628) (3,056) (2,612)

Current liabilities 1,755 (4,352) 17,666 4,192 3,610

Net trade working capital (1,854) (851) 14,038 1,136 998

Cash flow from oper. actv. 11,766 14,733 30,136 19,708 24,523(Inc)/Dec in fixed assets (14,331) (13,633) (27,085) (15,980) (10,000)

(Inc)/Dec in intangibles (12) (1,953) (57,743) 373 358

(Inc)/Dec in investments 1,014 (1,431) 4,614 (692) -

(Inc)/Dec in net dfr. tax asset - (1,249) (3,257) (2,001) (1,537)

(Inc)/Dec in minority interest 215 1,458 328 (66) -

(Inc)/Dec in oth. non-curr. ast. (514) (801) (94) (1,274) (8)

Cash flow from investing actv. (13,628) (17,608) (83,237) (19,639) (11,186)Inc/(Dec) in debt 2,174 (1,690) 51,481 3,020 (10,400)

Inc/(Dec) in equity/premium 272 2,944 1,130 32 36

Others 297 3,484 (635) (1,665) 500

Dividends 444 444 444 444 444

Cash flow from financing actv. 2,299 4,293 51,532 943 (10,308)Cash generated/(utilized) 437 1,418 (1,570) 1,012 3,028Cash at start of the year 678 1,115 2,532 958 1,970

Cash at end of the year 1,115 2,532 958 1,970 4,998


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November 4, 2011 12

Key ratios

Y/E March FY2009 FY2010 FY2011 FY2012E FY2013EValuation ratio (x)P/E (on FDEPS) 18.8 17.8 26.8 27.2 18.5P/CEPS 12.1 10.5 10.0 8.5 7.1

P/BVPS 5.3 3.8 3.3 3.0 2.6

Dividend yield 0.2 0.2 0.2 0.2 0.2

EV/Sales 4.7 4.1 3.7 3.0 2.5

EV/EBITDA 11.3 10.1 11.1 9.0 7.2

EV/Total assets 3.8 2.8 1.9 1.8 1.8

Per share data (`)EPS 22.7 24.0 15.9 15.7 23.1

Cash EPS 35.3 40.6 42.8 50.0 60.3

Dividend 1.0 1.0 1.0 1.0 1.0

Book value 80.1 111.2 128.6 143.1 165.1

DuPont analysisTax retention ratio (PAT/PBT) 0.9 0.9 0.8 0.8 0.8

Cost of debt (PBT/EBIT) 0.9 1.0 0.8 0.7 0.8

EBIT margin (EBIT/Sales) 0.3 0.3 0.2 0.2 0.2

Asset turnover ratio (Sales/Assets) 0.8 0.7 0.5 0.6 0.7

Leverage ratio (Assets/Equity) 1.5 1.4 2.4 2.2 1.9

Operating ROE 28.3 21.6 12.4 11.0 14.0

Return ratios (%)RoCE (pre-tax) 26.7 20.1 10.9 9.4 12.2

Angel RoIC 30.5 23.1 18.5 20.9 27.

RoE 33.1 25.1 13.3 11.6 15.0

Turnover ratios (x) Asset turnover (fixed assets) 0.9 0.8 0.7 0.6 0.7

Receivables days 28 28 34 34 34

Payable days 256 158 263 250 250


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N b 4 2011 13

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Disclosure of Interest Statement Bharti Airtel

1. Analyst ownership of the stock No

2. Angel and its Group companies ownership of the stock No

3. Angel and its Group companies' Directors ownership of the stock No

4. Broking relationship with company covered No

Ratings (Returns): Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)Reduce (-5% to 15%) Sell (< -15%)

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BhartiAirtel Angel 101111

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